Ally Financial Inc. · NYSE:ALLY
Ally Financial — General Motors Acceptance — Debt Investor Presentation (July 2005)
30 slides from Ally Financial's debt investor presentation, Jul 11, 2005
Slide 1: General Motors Acceptance Corp. UK Investor Reception
General Motors Acceptance Corp. UK Investor Reception 11 July 2005 Sanjiv Khattri Executive Vice President & Chief Financial Officer
Slide 2: GMAC Safe Harbor
GMAC Safe Harbor In the presentation that follows and in related comments by General Motors Acceptance Corporation's management, our use of the words "expect", "anticipate", "project", "estimate", "forecast", "objective", "plan", "goal", "outlook", "target", "pursue" and similar expressions is inten
Slide 3: General Motors
General Motors 3
Slide 4: GM North America
GM North America GM U.S. YTD 2005 market share of 26.7% flat to 2004 June sales of 558,092 up 41% U.S. dealer stocks down 350,000 units versus last year to just over 1 million units Strong results in 2005 JD Power Studies 8 "Most Dependable" awards and 10 more vehicles in "Top Three" in Vehicle Depe
Slide 5: GM Europe, Latin America, Africa, Middle East and Asia Pacific
GM Europe Restructuring plan is on track CYTD market share at 9.7%, up 0.2 share points GM Latin America, Africa and Middle East 5 consecutive profitable quarters Industry on pace for record 2005 sales Launch of GMDAT products has been successful GM Asia Pacific Continued increase in GM market share
Slide 6: General Motors Acceptance Corporation
General Motors Acceptance Corporation 6
Slide 7: Organization Structure
Organization Structure 7 GMAC Financial Services Financing Operations Insurance Operations North American Auto Operations International Auto Operations Commercial Finance Group Residential Capital MIC Personal Lines Mortgage Operations Commercial Mortgage RFC Residential Mortgage GM
Slide 8: GMAC Global Origination Volume
GMAC Global Origination Volume 2001 2002 2003 2004 (thousand of units) Global Automotive Financing Volume Consumer 2.718 2,641 2,348) 2,493 Wholesale 5,853 6,348 6,312] 6,558 Consumer Financing ¢ billions)* $54 $56 «= $53] $51 Avg. Wholesale Assets Outstanding @ billions) $20 $18 $24] $28 (8 billion
Slide 9: Net Income by Sector
Net Income by Sector 2002 2004 Auto Finance Diversified Businesses (Mortgage, Insurance, etc.) GMAC Net Income Diversification Sustainable future earnings driven by diverse business portfolio 11
Slide 10: Recent Financial Results Achieved in a Difficult Environment
Recent Financial Results Achieved in a Difficult Environment Credit Rating Downgrades Rising Market Interest Rates Widening GMAC Borrowing Spreads Declining Mortgage Volume 12
Slide 11: 2005 Net Income
2005 Net Income Financing Operations Insurance Operations Mortgage Operations At least $2.5 Billion 13
Slide 12: Mortgage Net Income
Mortgage Net Income Industry Volume * ($ trillion) 2.0 2.6 3.8 2.8 2.2 $ millions Volume represents US residential mortgage industry - source: Fannie Mae $385 Q1 14
Slide 13: 2005 Mortgage Outlook
2005 Mortgage Outlook Industry Volume GMAC Mortgage Profitability Growth in U.S. market share for 9th year in a row Increase in servicing income Increase in fee-for-service businesses Expansion of international mortgage operations 15
Slide 14: Insurance Net Income
Insurance Net Income $ millions $95 Q1 16
Slide 15: 2005 Insurance Outlook
2005 Insurance Outlook Insurance Premium Growth Underwriting Performance Growth in International Markets Income From Investment Portfolio 2005 Outlook G G G G G G 17
Slide 16: Financing Net Income
Financing Net Income $248 Q1 $ millions 18
Slide 17: 2005 Financing Outlook
2005 Financing Outlook 2005 Outlook G Credit Losses Y Y Rising Interest Rates Widening Borrowing Spreads Balance Sheet Capacity Y G Gains on Off-Lease Vehicles 19
Slide 18: GMAC Liquidity Update
GMAC GMAC Liquidity Update
Slide 19: GMAC Liquidity Position
GMAC Liquidity Position GMAC currently with very strong liquidity position Strong Q1 '05 cash portfolio of $18.5 billion* Capital leverage ratio reduced Term of debt maturities extended Many new funding channels established with more being cultivated Reduced reliance on institutional unsecured debt
Slide 20: New Funding Initiatives
New Funding Initiatives Further develop the private and public whole loan markets for auto assets GMAC selling more subordinated tranches Extending committed flow agreements Syndicated multi-investor whole loan transactions Grow GMAC banks GMAC Automotive Bank, GMAC Bank, GMAC Commercial Mortgage Ba
Slide 21: "Originate/Sell" Business Model
"Originate/Sell" Business Model GMAC Originates Loan Captive Finance for GM Subvented Business Auto Loan Underwriting Expertise GMAC Services Loan High quality, low cost servicing capability Sell Loans Servicing Agreement Low-Cost "Storage" Capacity Banks who Buy and Hold Loans Banks who "Repackage"
Slide 22: Residential Capital
Residential Capital Credit Rating Ring-Fenced Business Strategic Flexibility Funding Diversity Increased Liquidity $4B raised YTD Residential Capital Stand-alone Credit Rating GMAC RFC GMAC Mortgage GMAC Credit Rating (Residential Funding Corp) ResCap 25
Slide 23: 2005 GMAC U.S. Auto Funding Plan
2005 GMAC U.S. Auto Funding Plan * Includes pre-funding for 2005 ABCP Term ABS Bank Conduits 26
Slide 24: Impact of ABS on Global Automotive Funding
Impact of ABS on Global Automotive Funding Outstanding Secured (ABS) Unsecured 21% 79% 2004 2001 18% 82% 27
Slide 25: Evaluation of the Structural Subordination Issue
Evaluation of the Structural Subordination Issue GMAC believes that its medium-term funding plans will not structurally subordinate existing unsecured debt holders While structural subordination can become an issue if asset coverage ratios are severely impaired and/or the quality of unencumbered ass
Slide 26: Evaluation of the Structural Subordination Issue - cont'd
Evaluation of the Structural Subordination Issue - cont'd GMAC's total asset coverage ratios are expected to improve over the next two years, despite increased use of securitization and whole loan sales Whole loan activity helps to protect the asset coverage ratio As a result, GMAC believes structur
Slide 27: GM / GMAC Operating Agreement
GM / GMAC Operating Agreement Formal public operating agreement in place since 2001 All credit transactions are conducted and priced at prudent and commercially reasonable standards and established on an arm's length basis GMAC's equity will be kept at commercially-reasonable levels, as determined q
Slide 28: 2005 Objectives
2005 Objectives Net Income Earn at least $2.5 billion Dividends to GM Remit in excess of $2.0 billion Strong Liquidity Position Ensure ample funding under downside scenarios 31
Slide 29: Q & A
Q & A 32
Slide 30: General Motors Acceptance Corporation
General Motors Acceptance Corporation 33
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